Results
2Revenue $14.1 billion, up 8.1% versus prior year
1Diluted EPS $4.24, up 13.4% versus prior year
$1.9 billion cash from operating activities, 162% of net earnings
81.4-to-1 book-to-bill, with strong order activity in all segments
6RESTON, Va . – General Dynamics (NYSE: GD) today reported second-quarter 2026 operating earnings of $1.5 billion, and $4.24 per diluted share (EPS), on revenue of $14.1 billion.
4Compared with the year-ago quarter, revenue increased 8.1%, operating earnings increased 11.9%, and diluted EPS increased 13.4%.
3Operating margin of 10.4% was a 40-basis-point expansion from the year-ago quarter.
Management commentary
5“Our businesses delivered solid results in the quarter, with revenue growth across all four segments – including double-digit increases in revenue and noteworthy margin expansion in Aerospace and Marine Systems – reflecting our ongoing efforts to increase the pace of execution and deliver on our backlog,” said Phebe Novakovic, chairman and chief executive officer.
“We are well positioned to support our customers’ needs and are continuing to make significant investments to increase output to meet strong and growing demand.”
Capital return
Cash and Capital Deployment
Results
Net cash provided by operating activities in the quarter totaled $1.9 billion, or 162% of net earnings.
7During the quarter, the company paid $429 million in dividends, invested $234 million in capital expenditures, and reduced total debt by $498 million.
The company ended the quarter with $7.5 billion in total debt and $4.3 billion in cash and equivalents on hand.
Orders and Backlog
Orders received in the quarter totaled $14.7 billion in the defense segments and $5.3 billion in the Aerospace segment, for a total of $20 billion.
Book-to-bill ratio, defined as orders divided by revenue, was 1.4-to-1 for the quarter for the defense segments, 1.5-to-1 for the Aerospace segment, and 1.4-to-1 on a company-wide basis.
Backlog at the end of the quarter was $136.5 billion.
Estimated potential contract value, representing management’s estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $50.4 billion.
Total estimated contract value, the sum of backlog plus estimated potential contract value, was $186.9 billion.
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